Production and Operations Management Systems Chapter 1: Introduction

Stage 3 Companies

• A Stage III company installs and manages manufacturing and service processes that are equivalent to those used by the leading companies.
• C&H* describe this as ‘‘distinctive service competence.’’
• A Stage III company makes efforts to emulate the special capabilities of the best companies.
• Quality and productivity improvement programs are utilized in an effort to be as good as the best.
• Stage III firms have a relatively long-term planning horizon supported by a detailed P/OM strategy.
• W&H* describe such firms as being internally supportive, meaning that P/OM activities support the Stage III company’s competitive position.
• *Source: Chase, Richard B., and Robert H. Hayes, Beefing-Up Operations in Service Firms, Sloan Management Review, Fall 1991, pp 17–28. (C&H)
• *Source: Wheelwright, Steven C., and Robert H. Hayes, Competing Through Manufacturing, Harvard Business Review, January–February 1985, pp 99–109. (W&H)